Afficiency announces Series A investment round
By Edlyn Cardoza
Afficiency, an InsurTech transforming the end-to-end life insurance buying process, recently announced it secured $7 million in a Series A investment round led by IA Capital Group with participation from Impression Ventures, SBLI (The Savings Bank Mutual Life Insurance Company of Massachusetts) and Western & Southern Financial Group. The round was significantly oversubscribed and brings the total raised by Afficiency to $10.2 million.
The investment will help to fuel Afficiency’s strategy to modernise the life insurance market, bringing 100% digital in-session life insurance products to agents, distributors, carriers, and other valued partners through custom integrations. With Afficiency’s API, partners can bring products into their native environments, and for those starting from scratch, Afficiency offers ready-made digital interfaces.
Afficiency is scaling and rapidly approaching profitability since its inception in just 2018. Its capital-efficient business model is already driving millions of dollars of gross written premium through its platform each month and has experienced 1000% YOY revenue growth.
“At Afficiency, we’re on a mission to provide the sellers of life insurance more relevant products and an easier purchasing experience for their clients, and we’re passionate about overhauling the outdated life insurance buying process,” said Mark Scafaro, CEO and Co-Founder of Afficiency. “This funding round will support us as we expand our partnership network, launch several new products and grow our team with the next generation of insurtech talent.”
Afficiency’s business centres around enabling the distribution of life insurance. Almost overnight, traditional distributors can empower their agents to sell digital insurance products that can be underwritten in seconds and sold in minutes, not days and weeks. Afficiency enables a new cohort of digital distributors such as FinTechs, who have never sold life insurance before, and InsurTechs.
Afficiency helps these businesses serve their growing customer bases with fully digital insurance products that can be quickly adopted into a digital customer journey. Afficiency supplies such products to several startups, including Sproutt, the insurance company that uses data and AI to reward people living healthy lives, and Pendella, a startup technology company offering an end-to-end digital individual life and disability insurance platform to distributors and carriers.
“Afficiency is perfectly positioned to enable digital distribution of life insurance with its suite of APIs, serving as a valued partner for established carriers, distributors and insurtech newcomers,” said Rick Viton, Partner at IA Capital Group, who is joining Afficiency’s Board of Directors. “We are thrilled to contribute to Afficiency’s growth story, and we know its technology will continue to fuel innovation to help make life insurance more accessible to those without coverage or underinsured.”
IA Capital Group is a New York-based private investment firm and manager of the Inter-Atlantic funds. IA Capital Group partners with innovative entrepreneurs in venture and growth capital investments across InsurTech and FinTech.
Afficiency was launched under the vision of Co-Founders Mark Scafaro and Ravi Arasan, two industry mavens who brought a passion for overhauling outdated life insurance processes.
IBSi Daily News Analysis
August 16, 2022
Self-employed struggle to access financial services. What can FinTech do?Read More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage